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How can China fight the current financial crisis and maintain long-term stable development?

   After three decades of reform and opening,本论文由英语论文网www.51lunwen.org整理提供 China\'s economy has always maintained high-speed development. GDP from around 362 billion Yuan in1978 increased to around 30 trillion Yuan in 2008, which had grown by over 80 times(National Bureau of Statistic of China ,2009) .However, although China has benefited from globalization in the last three decades, China has also got many serious troubles from globalization, such as environmental problems, inequality and corruption. In addition, the current global financial crisis is one of the big troubles from the current neoliberal globalization and the dream of free market capitalism has been shattered (Wolf, 2008).

    Neoliberalism is a political philosophy, a continuance and redefinition of the neoclassical theories of economicscentral principle of neoliberal policy. The central principle of neoliberal policy is untrammelled free markets and free trade including free capital flows（Chang，2007）. Neoliberal movements ultimately changed the world\'s economies in many ways, such as growth in international trade and cross-border capital flows, elimination of trade barriers, cutbacks in defense spending and in public sector employment, higher living standards, increasing technology transfer and innovation. However, its negative effects are also very serious. More and more economists claim high inequality is spurred by neoliberal policies which produce profound political, social, economic, health, and environmental constraints and problems.  Unfortunately, all these disasters have happened in China.

    So, how can China respond to the financial crisis and further development? In this paper, Keynesianism is highly suggested to lend guidance to fighting the financial crisis; furthermore, improving education can help China maintain long-term stable development.

    Keynesianism is a macroeconomic theory based on the ideas of 20th-century British economist John Maynard Keynes. Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes, and therefore advocates active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government, to stabilize output over the business cycle(Sheffrin, 2003).Keynes contended that aggregate demand for goods might be insufficient during economic downturns. Therefore, government policies could be used to increase aggregate demand, thus increasing economic activity and reducing unemployment and deflation. Likewise, during economic overheating, government policies could be used to eliminate inflation to balance and stabilize the economy.

   Business cycle to many the true success of Keynesian policy can be seen at the onset of economic recessionsWorld War II, 本论文由英语论文网www.51lunwen.org整理提供which provided a kick to the world economy, removed uncertainty, and forced the rebuilding of destroyed capital. Keynesian ideas became almost official in social-democratic Europe after the war and in the U.S. in the 1960s. Also the success can be seen in the last few years in China. In the wake of the financial crisis of 2007-2009 the free-market consensus began to attract negative comment even by mainstream opinion formers from the economic Right. I本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。